North American Construction Group (NOA) Q1 2026 earnings summary

Executive summary

• Combined revenue for Q1 2026 reached $423M (CAD 423 million), up 8% year-over-year and 23% sequentially, driven by strong Australian performance and the integration of Iron Mine Contracting (IMC).

• Adjusted EBITDA was $99.5M (CAD 99 million), flat year-over-year but up 28% sequentially, reflecting operational improvements and IMC's contribution.

• Free cash flow improved to $3.7M, a significant turnaround from a $41.6M outflow last year, with operating cash flow before working capital at CAD 63 million.

• IMC acquisition closed in April 2026, expanding Australian operations, adding $840M in backlog, and contributing $64.7M in revenue.

• Net income was $5.6M, with adjusted EPS at $0.37, and strong operational execution on 2026 priorities in both Australia and Canada.

Financial highlights

• Australia revenue grew 17% year-over-year to $185.2M, with a 16.7% gross profit margin; Canada revenue declined 26% to $131.6M, but margin improved to 9.5%.

• Combined gross profit was $58M, with margin improvement driven by wholly-owned entities and cost optimization.

• Adjusted EBITDA and EBIT were in line with prior year but up 27% and 119% sequentially from Q4 2025; adjusted EBITDA margin was 23.5%.

• Adjusted EPS was $0.37, reflecting IMC contributions and higher interest expense.

• Interest expense increased to $19.1M (CAD) and $16.7M (USD), mainly due to Australian expansion and new senior unsecured notes.

Outlook and guidance

• 2026 guidance reaffirmed: combined revenue of $1.5–$1.7B (CAD 1.6 billion), adjusted EBITDA of $380–$420M (CAD 400 million), and free cash flow of $110–$130M (CAD 120 million).

• Over 90% of midpoint revenue guidance is already secured for 2026, with a contractual backlog at $3.9B.

• Q2 expected to be seasonally lower due to oil sands spring break-up, with stronger performance anticipated in the second half as IMC synergies are realized.

• Bid pipeline totals $14.5B globally, with $4.6B in active tenders across 13 commodities.

• Operational priorities include safety, cost reduction, fleet optimization, and successful integration of IMC.